El Salvador recently legalized Bitcoin as a legal tender. Not only that, they also mine cryptocurrencies using geothermal energy that comes from volcanoes. But it worries a leading expert.
President Nayib Bukulele even unveiled plans to build a Bitcoin city in the country, which would harness geothermal energy from volcanoes.
This Bitcoin City will be built in La Union Province and harness the thermal energy of Mount Conchagua to power Bitcoin mining.
President Bukelele promised that the city would not only be used as a Bitcoin mining base, but also be equipped with all the facilities like other cities.
"Residential areas, commercial areas, public services, museums, entertainment, bars, restaurants, airports, ports, railroads, and everything devoted to Bitcoin," said the 40-year-old president.
However, according to Ricardo Navarro, the country's environmental expert and recipient of the prestigious Goldman Prize, the government of El Salvador should focus on providing adequate electricity to its 6 million population who often experience power outages.
He also warned that using volcanic energy for Bitcoin mining would have a bad impact. The reason is, the cost of utilizing energy is quite high.
"Geothermal costs are still higher than oil, otherwise we would have used a lot of it. What will end up happening is that we will actually buy more oil," he said.
Building a new city with Bitcoin near a volcano also doesn't make sense. "Talking about building this city next to a volcano is like thinking you're rich just because you live next to a bank," he likened.